Discussion:Mandatory e-File
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| {{ForumReplyPost|UserID=FloridaTaxes|Date=7 November 2009|Text=What about the ones that reject when you e-file? I had one reject this year and the only explanation I got was that one of the W2 EINs didn't match. I checked them and called the employers and they were fine. PPS told me to paper file the return. I also had one with dependent care expenses but no SSN/EIN for the provider, so I had to paper file. What do we do about those?}} | {{ForumReplyPost|UserID=FloridaTaxes|Date=7 November 2009|Text=What about the ones that reject when you e-file? I had one reject this year and the only explanation I got was that one of the W2 EINs didn't match. I checked them and called the employers and they were fine. PPS told me to paper file the return. I also had one with dependent care expenses but no SSN/EIN for the provider, so I had to paper file. What do we do about those?}} | ||
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| + | {{ForumReplyPost|UserID=Bjeter|Date=7 November 2009|Text=This new mandate is awful. I discourage my clients from efiling for a number of reasons. First, it costs more to efile. The cost of printing the extra paper, envelopes and postage is less than the software fees for efiling (at least what Lacerte charges). The additional time I have to spend keying irrelevant W-2 data such as employer EIN and state withholding numbers cost the client much more that time going to the post office. Throw in the time spent confirming the returns and calling clients to remind them to return the signature pages and the client and I are both out of pocket much more than paper filing. | ||
| + | Second, I have no idea what the IRS receives on an efile. I have things in my software (depreciation schedules, client notes, etc) that I would prefer the IRS didn't see. I have no way of knowing whether or not this information is sent to the IRS. I presume the software companies are smart enough to program their software to not send data that isn't required, but based on my dealings with Lacerte, i'm not 100% certain. When I send the IRS a paper return, I know exactly what they got and what the didn't. | ||
| + | Third, I am not responsible for my clients compliance. If I prepare a paper return and the client doesn't want to file it or is irresponsible and doesn't file on time, it's not my problem. The efiling mandate forces me to make sure my clients file on time. | ||
| + | Fourth, it makes life easier for the IRS. They are basically shifting their workload onto the preparer community. I am never in favor of doing something to help the IRS process a return faster or better unless it helps my client. | ||
| + | Fifth, and this is my Libertarianism showing, I resent the government removing a right of my clients. Right now you have the right to file a paper return. Next year you won't. This is just another government mandate stripping away individual liberties. | ||
| + | I realize that I'm in a minority with these views, but I felt the need to vent. Maybe some of you efilers will see the light and change your ways.}} | ||
Revision as of 13:12, 7 November 2009
Discussion Forum Index --> Basic Tax Questions --> Mandatory e-File
Discussion Forum Index --> Tax Questions --> Mandatory e-File
| 6 November 2009 | |
| Just read an article on WebCPA.com that Congress is going to mandate all preparers who file greater than 10 returns to e-file prepared after December 31, 2010. Any thoughts? | |
| 6 November 2009 | |
| It's in the new law that the President will sign today.
taxbilly | |
Death&Taxes (talk|edits) said: | 6 November 2009 |
| What will Mr. Wood do? Discussion: Tax Lawyer commits heresy?
We have a recent discussion on Hedge Fund K-1s that often contain admonitions that such and such form must be filed [926, 8621] which my software does not even include, and which do not appear on the list of forms to attach to 8453. This year for one client, we efiled in September then amended before October 15th to include 16 Forms 8621. | |
WIBadgerCPA (talk|edits) said: | 6 November 2009 |
| Already required in Wisconsin | |
Walking Spanish (talk|edits) said: | 6 November 2009 |
| Phase 3 of Modernized E-file, which is scheduled for implementation for the 2011 tax year, will allow scanned attachments to electronically transmitted 1040's. | |
| 6 November 2009 | |
| What about late filed returns and amended returns? Still paper in 2011? | |
Walking Spanish (talk|edits) said: | 6 November 2009 |
| I know that the system will be available year-round, but I'm not sure how late you will be able to file a return.
I think amended returns will be included, but I can't remember all of the details. The larger question is, will our software be ready? I've wanted to e-file 1041's for years, but ProSeries doesn't support it. I'm too busy to research today, but perhaps someone can find a link to MeF enhancements? | |
Death&Taxes (talk|edits) said: | 6 November 2009 |
| RIA writes: "There is no sanction for failure to comply with this change." | |
| 6 November 2009 | |
| The new law amends IRC §6011(e). Treas. Reg. §301.6011-2(f) states (in part), “(f) Failure to file.—If a person fails to file an information return on magnetic media when required to do so by this section, the person is deemed to have failed to file the return.”
What effect does this have on RIA’s “no sanction” statement? | |
Death&Taxes (talk|edits) said: | 6 November 2009 |
| That particular regulation seems to deal with information returns (note the Code sections mentioned) - we shall see if RIA speaks too soon, but they went on to say the writers felt their requirement would have a negligible effect on revenue but might free up more IRS personnel and make the service more efficient. | |
| 6 November 2009 | |
| Personally, I like to e-file client returns due to the fact that you get a confirmation that it has been received and accepted. | |
| 6 November 2009 | |
| Already required in IN if > 100 returns filed. Client can opt out. | |
Death&Taxes (talk|edits) said: | 6 November 2009 |
| NJ also. | |
| 6 November 2009 | |
| Is there an opt out provision in the new federal requirement? | |
| 7 November 2009 | |
| http://www.jct.gov/publications.html?func=startdown&id=3621
taxbilly | |
FloridaTaxes (talk|edits) said: | 7 November 2009 |
| What about the ones that reject when you e-file? I had one reject this year and the only explanation I got was that one of the W2 EINs didn't match. I checked them and called the employers and they were fine. PPS told me to paper file the return. I also had one with dependent care expenses but no SSN/EIN for the provider, so I had to paper file. What do we do about those? | |
| 7 November 2009 | |
| This new mandate is awful. I discourage my clients from efiling for a number of reasons. First, it costs more to efile. The cost of printing the extra paper, envelopes and postage is less than the software fees for efiling (at least what Lacerte charges). The additional time I have to spend keying irrelevant W-2 data such as employer EIN and state withholding numbers cost the client much more that time going to the post office. Throw in the time spent confirming the returns and calling clients to remind them to return the signature pages and the client and I are both out of pocket much more than paper filing.
Second, I have no idea what the IRS receives on an efile. I have things in my software (depreciation schedules, client notes, etc) that I would prefer the IRS didn't see. I have no way of knowing whether or not this information is sent to the IRS. I presume the software companies are smart enough to program their software to not send data that isn't required, but based on my dealings with Lacerte, i'm not 100% certain. When I send the IRS a paper return, I know exactly what they got and what the didn't. Third, I am not responsible for my clients compliance. If I prepare a paper return and the client doesn't want to file it or is irresponsible and doesn't file on time, it's not my problem. The efiling mandate forces me to make sure my clients file on time. Fourth, it makes life easier for the IRS. They are basically shifting their workload onto the preparer community. I am never in favor of doing something to help the IRS process a return faster or better unless it helps my client. Fifth, and this is my Libertarianism showing, I resent the government removing a right of my clients. Right now you have the right to file a paper return. Next year you won't. This is just another government mandate stripping away individual liberties. I realize that I'm in a minority with these views, but I felt the need to vent. Maybe some of you efilers will see the light and change your ways. | |
